The European Bank for Reconstruction and Development (EBRD) has announced its approval of a €45 million loan to Tunisian electricity and gas company (STEG) for the development of a submarine power cable linking Tunisia and Italy. This funding will contribute to the construction of a 200-kilometer, 600 MW high voltage direct current (HVDC) transmission network.
STEG plans to combine the EBRD loan with a €307.6 million grant from the European Union’s Connecting Europe Facility, as well as financing from the European Investment Bank, the World Bank, and KfW. The project aims to enhance cross-border electricity trade, strengthen energy security, and diversify energy sources for both Tunisia and Italy.
The submarine power cable will provide a reliable and efficient means of electricity transmission between the two countries. HVDC technology enables the transmission of electricity over long distances with minimal energy losses. This interconnection will facilitate the exchange of renewable energy resources, helping to reduce carbon emissions and promote sustainable energy practices.
Additionally, the project will foster economic growth and job creation by boosting regional electricity markets and supporting the expansion of Tunisia’s renewable energy sector. The increased cooperation in the energy sector between Tunisia and Italy will also contribute to greater energy resilience for both countries.
Overall, the loan provided by the EBRD represents a significant step towards further developing Tunisia’s energy infrastructure and promoting clean energy exchange between Tunisia and Italy.